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Note N - Segment Reporting
 12 Months Ended
Sep. 25, 2021
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE N – SEGMENT REPORTING

 

We principally sell our products to the food service and retail supermarket industries. Sales and results of our frozen beverages business are monitored separately from the balance of our food service business because of different distribution and capital requirements. We maintain separate and discrete financial information for the three operating segments mentioned above which is available to our Chief Operating Decision Maker. We have applied no aggregation criteria to any of these operating segments in order to determine reportable segments. Our three reportable segments are Food Service, Retail Supermarkets and Frozen Beverages. All inter-segment net sales and expenses have been eliminated in computing net sales and operating income. These segments are described below.

 

Food Service

 

The primary products sold by the food service segment are soft pretzels, frozen novelties, churros, handheld products and baked goods. Our customers in the food service segment include snack bars and food stands in chain, department, and discount stores; malls and shopping centers; casual dining restaurants; fast food outlets; stadiums and sports arenas; leisure and theme parks; convenience stores; movie theatres; warehouse club stores; schools, colleges, and other institutions. Within the food service industry, our products are purchased by the consumer primarily for consumption at the point-of-sale.

 

Retail Supermarkets

 

The primary products sold to the retail supermarket channel are soft pretzel products – including SUPERPRETZEL, frozen novelties including LUIGI’S Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, PHILLY SWIRL cups and sticks, ICEE Squeeze-Up Tubes and handheld products. Within the retail supermarket channel, our frozen and prepackaged products are purchased by the consumer for consumption at home.

 

Frozen Beverages

 

The Company markets frozen beverages primarily under the names ICEE, SLUSH PUPPIE and PARROT ICE which are sold primarily in the United States, Mexico, and Canada. We also provide repair and maintenance service to customers for customers’ owned equipment.

 

The Chief Operating Decision Maker for Food Service, Retail Supermarkets and Frozen Beverages reviews monthly detailed operating income statements and sales reports in order to assess performance and allocate resources to each individual segment. Sales and operating income are key variables monitored by the Chief Operating Decision Maker and management when determining each segment’s and the company’s financial condition and operating performance. In addition, the Chief Operating Decision Maker reviews and evaluates depreciation, capital spending and assets of each segment on a quarterly basis to monitor cash flow and asset needs of each segment. Information regarding the operations in these three reportable segments is as follows:

 

  

September 25,

  

 

September 26,

  

 

September 28,

 
  

2021

  

2020

  

2019

 
  

(52 weeks)

  

(52 weeks)

  

(52 weeks)

 
  (in thousands) 

Sales to External Customers:

            

Food Service

            

Soft pretzels

 $174,977  $150,786  $209,227 

Frozen novelties

  44,605   35,176   43,672 

Churros

  64,916   46,881   65,976 

Handhelds

  75,627   36,088   31,685 

Bakery

  342,609   332,514   359,020 

Other

  22,249   17,448   26,707 

Total Food Service

 $724,983  $618,893  $736,287 
             

Retail Supermarket

            

Soft pretzels

 $54,990  $49,157  $36,264 

Frozen novelties

  100,059   88,743   73,751 

Biscuits

  24,197   28,317   25,316 

Handhelds

  7,574   12,303   10,902 

Coupon redemption

  (3,689)  (3,569)  (3,596)

Other

  1,766   2,214   1,955 

Total Retail Supermarket

 $184,897  $177,165  $144,592 
             

Frozen Beverages

            

Beverages

 $124,498  $107,004  $171,820 

Repair and maintenance service

  81,305   83,420   85,834 

Machines revenue

  26,953   33,986   45,811 

Other

  1,943   1,570   2,143 

Total Frozen Beverages

 $234,699  $225,980  $305,608 
             

Consolidated Sales

 $1,144,579  $1,022,038  $1,186,487 
             

Depreciation and Amortization:

            

Food Service

 $26,738  $28,111  $26,978 

Retail Supermarket

  1,671   1,577   1,418 

Frozen Beverages

  20,982   23,360   20,214 

Total Depreciation and Amortization

 $49,391  $53,048  $48,610 
             

Operating Income:

            

Food Service

 $39,172  $6,458  $76,546 

Retail Supermarket

  25,914   23,202   10,460 

Frozen Beverages

  6,132   (12,466)  29,950 

Total Operating Income

 $71,218  $17,194  $116,956 
             

Capital Expenditures:

            

Food Service

 $38,558  $34,798  $29,197 

Retail Supermarket

  288   1,763   1,979 

Frozen Beverages

  14,732   21,256   25,952 

Total Capital Expenditures

 $53,578  $57,817  $57,128 
             

Assets:

            

Food Service

 $799,149  $738,033  $766,081 

Retail Supermarket

  31,486   31,704   29,369 

Frozen Beverages

  291,584   286,816   223,889 

Total Assets

 $1,122,219  $1,056,553  $1,019,339